South Africa Ramps Up Crypto Tax Enforcement, Audits to Follow

  • SARS increases crypto oversight, requiring traders to report digital assets on their tax returns.

  • Partnership with FSCA aims to enhance compliance and gather data from crypto exchanges.  

  • South Africa to license 60 crypto firms by October; applications due by November 30.  

The South African Revenue Service (SARS) is increasing its scrutiny of crypto asset holders and traders, warning that individuals must report their digital assets on their tax returns. With an estimated 5.8 million South Africans actively trading crypto, SARS is taking steps to increase regulation in this growing sector.

SARS has teamed up with the Financial Sector Conduct Authority (FSCA) to gather information from local crypto exchanges. This partnership aims to streamline data collection on digital asset holdings, focusing on traders who haven’t yet declared their assets.

Licensed exchanges like Luno and VALR have confirmed that they will cooperate with legal requests from SARS for specific investigations, though they don’t automatically share client data.

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